Memphis (Tenn.) Light, Gas & Water Division Pension System committed $12.5 million to the Sentinel Realty Partners Real Estate IV commingled apartment fund, $25 million to the J.P. Morgan Fleming Asset Management open-ended diversified commingled real estate fund and $12.5 million to the Lend Lease Arch Fund, said John McCullough, senior vice president, CFO and treasurer.
Funding will come from reducing three overweighted active domestic fixed-income portfolios, of about $120 million each by a total of $50 million. They are managed by MCM, Seix Investment Advisors and Criterion Investment Management, said Mr. McCullough. The $1 billion plan is overweighting real estate, seeking a 10% return with less volatility than fixed income, he said. The systems real estate target is 5% of total assets.